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Volkswagen Settlement

What is the Volkswagen Settlement?

Governor Roy Cooper has designated the N.C. Department of Environmental Quality (DEQ) to manage North Carolina’s share of the Volkswagen (VW) Settlement, an agreement between the German automaker and the U.S. Department of Justice on behalf of the U.S. Environmental Protection Agency (EPA).

VW accepted the $14.9 billion penalty after acknowledging that it installed devices on certain diesel vehicles to make them appear to meet strict emissions standards when in fact they did not. Funds will be used by states to buy back affected vehicles as well as fund environmental mitigation and investment to promote the use of zero-emission vehicles (ZEV) and infrastructure.

North Carolina will receive approximately $92 million, based on the number of affected 2.0- and 3.0-liter diesel engine vehicles registered here. The sum is part of the $2.9 billion designed for projects through the VW’s Environmental Mitigation Trust.

Phase 1 Timeline

Plan submission to trustee (Summer 2018)

Release request for proposals (Fall 2018)

Proposal evaluations (Winter 2018/Spring 2019)

Phase 1 project selections (Spring/Summer 2019)

Phase 2 planning (Fall 2019/Winter 2020)

Draft mitigation plan available

The DEQ heldfive public stakeholders meetings across the state to discuss the VW Settlement and the draft Mitigation Plan and provide an opportunity for the public to provide input. The meetings were open to the public and were held in: Asheville (March 26), Kannapolis (March 27), Kinston (April 16), Durham (April 17), and Wilmington (April 20). The Durham meeting was video taped to allow those that could not attend to see what was presented. Presentations Volkswagen 101Volkwagen Mitigation Draft Plan

Contact Us

If you have questions regarding the VW Settlement, or wish to be added to our VW Settlement Contact List, please contact us at daq.NC_VWGrants@ncdenr.gov. Be sure to add the address to your SPAM email filter.

Settlement Breakdown

Of the $2.9 billion allocated to environmental mitigation projects, North Carolina will receive approximately $92 million. The amount awarded was based on the approximately 16,000 affected 2.0-and 3.0-liter diesel engine vehicles registered in North Carolina.

Timeline

Beneficiaries will have up to 10 years to spend 80 percent of their allocated funds, and at most 15 years to spend 100 percent of their funds. Beneficiaries can request up to one-third of their allocated funding in the first year or two-thirds during the first two years.

Event

Approximate time frame

Court approved the partial settlement

October 25, 2016

Trust Effective Date

October 2, 2017

North Carolina applies to become a beneficiary

December 1, 2017

North Carolina named a beneficiary by Trustee

January 29, 2018

Draft Mitigation Plan released for input

March 2018

DAQ holds stakeholder meetings

March/April 2018

Public comment period for Mitigation Plan ends

May 3, 2018

North Carolina submits its plan for using the funds

June/July 2018

Mitigation Projects

North Carolina’s $92 million allocation from the VW Settlement will be invested in a variety of environmental mitigation projects. Appendix D-2 of the Consent Decree outlines specific details of how trust funds may be used. Overall, money from the settlement may be used to pay some or all of the cost to repower (change the engine) or replace eligible diesel-powered vehicles with new diesel or alternative fuel, or all-electric engines or vehicles for these 10 project types:

Light Duty Zero Emission Vehicle Supply Equipment

• Limited to 15 percent of funds
• Funds can be used for acquisition, installation, operations and maintenance of light duty ZEV equipment. These include level 1 and 2 DC fast chargers in public spaces, workplaces and multi-unit dwellings as well as hydrogen fuel cell supply equipment in public spaces.